7. (10 pts) Let total market demand for labor be represented by E D = 1,000 50w where ED is total employment and w is the hourly wage. (a) What is the market clearing wage when total labor supply is represented by E5 = 100w 800? How many workers are employed? How much producer surplus is received at the equilibrium wage? (b) Suppose the government imposes a minimum wage of $16. What is the new level of employment? How much producer surplus is received under the minimum wage? 8. (15 pts) Analyze the impact of the following changes in labor market conditions for schoolteachers. Explain your reasoning carefully and show your results using a supply-demand graph. Does the equilibrium wage increase or decrease? Does the employment of teachers increase or decrease? a. Demographics show there will be an increase in the number of school-aged children over the next few years. b. The price of computer equipment used in the classroom decreases (assume teachers c. and computers are gross complements). d. Teacher's unions are effective in negotiating a wage rate that is above the equilibrium wage. There is an increase in the productivity of teachers. f. There is an increase in the wage rate for teacher's aides (assume teachers and teacher's aides are gross substitutes). f\